Effective Supplier Diversity Program - Benefits
1.Provides opportunities for equality in the supply chain
2.Promotes business growth and efficiency
3.Fosters strategic relationships with local communities
4.Evokes innovation in ideas
5.Demonstrates the company's social commitment
6.Broadens the company's clientele
7.Increases supply chain resiliency
It is a direct effect of your organization’s partnership with diverse groups. Every order you place with them generates revenue for them. When you sell the products made from procuring their raw materials, you get more sales from their support network, benefitting the stakeholders, including the employees and the executives.
The small and diverse groups participating in your supply chain gain employment due to your partnership, while the small groups, in turn, create employment within their supply chain by hiring employees to fulfill your order. The local and national economy greatly benefits from this interlinked chain of transactions that create employment. This employment, in turn, generates revenue in the form of taxes that the employees and organizations pay to the state.
Diversity in your supply chain causes individual employees in diverse groups to generate their own income and profits by working towards fulfilling your demand. It also generates income for your organization so that you get the required commodities at a lower cost through diverse sourcing.
Additionally, supplier diversity increases your organization’s reputation, increasing your brand value in the market. In the long run, the shareholders, who are among the key stakeholders, witness a rise in the share price.